Projects

Broadgate West - Appold Street London EC2

International law firm, Mishcon de Reya, instructed JPW Real Estate to provide property investment and valuation advice in respect of offices at Broadgate West.

The offices were at the centre of a major divorce case in 2007 and initially estimated to be worth in excess of £350m. JPW Real Estate provided advice to one party in the divorce case and examined a number of key technical issues including:

The difference between ‘Market Value’ and ‘Worth’ from both a valuation and investment appraisal perspective.

Whether you are valuing a business or a property asset.

The ‘fairness’ of a single snapshot of capital value at a time of violent market movements (a fall of 40% over the previous 2-year period).

Whether ‘Market Value’ is the correct basis of value in a divorce case when there is no intention to sell.

The date and basis of valuation and the extent to which the Court relied upon ‘informal’ valuations that were not compliant with RICS valuation standards.

The case came before the High Court in March 2009 by which time the capital value of the assets and the client’s net equity had plunged in line with the falls seen across the property market despite the net cash flow after debt service remaining positive. The Court found in favour of the ‘informal’ valuations based on a March 2009 date and these stood as the basis for the financial settlement. The case was taken to the Court of Appeal in 2010 but the previous decision was upheld.